Backpack Launches Lifeline for FTX Creditors: A New Portal to Cash Out Claims!

Former FTX Insiders Open Up a No-Fee Path to Liquidity

Hold onto your hats, crypto fans! Backpack, the daring exchange born from the ashes of FTX, just dropped a bombshell. They've launched a slick new portal where FTX creditors can hawk their debt claims straight to eager third-party buyers. And get this—it's happening right now!

On July 18, Backpack made waves with a post on their Chinese X account, throwing down the gauntlet with a "non-profit, neutral" service. They're here to save the day for the crypto community still reeling from the 2022 FTX meltdown.

This isn't your grandma's platform, folks. It's a one-stop shop for claim holders, with everything from identity verification to final settlement all wrapped up in the Backpack interface. And the best part? Backpack's not taking a single penny for it. No fees, no profit—just pure, unadulterated help.

Backpack 正式开放 FTX 债权出售通道… pic.twitter.com/QkqwXFC4nD

The mission? To throw a lifeline to those FTX users still left high and dry nearly three years after the exchange went belly up. They're all about getting you that sweet, sweet liquidity.

But here's where it gets juicy: this portal is a godsend for FTX users stuck in places like China and Russia. We're talking about $470 million in claims, with $380 million of that coming straight from Chinese users. That's a lot of cash on the line!

Recovery's been a nightmare for these folks, with delays and outright exclusions from FTX's official bankruptcy process. Backpack's stepping up, linking up verified institutional buyers with claim holders and blowing a hole in that bureaucratic mess.

But wait, there's a catch! Backpack's urging users to think twice before jumping in. Hang onto your claims, and you might get a bigger payout down the line. Selling now could cost you in the long run. It's your call, but make it count.

Let's not forget Backpack's own wild ride. When FTX imploded in November 2022, Backpack, co-founded by ex-Alameda Research engineer Armani Ferrante and former FTX general counsel Can Sun, took a brutal hit—losing a whopping $14.5 million, or 88% of their operating funds.

But they've clawed their way back, doubling down on transparency with daily proof-of-reserves updates and beefing up security across the board.

Fast forward to January 2025, and Backpack made a bold move, snagging FTX EU for $32.7 million. That deal brought them a MiFID II license and the responsibility to process €53 million in creditor repayments. But it's not all smooth sailing—controversy's been swirling around that purchase.

The FTX bankruptcy estate's crying foul, claiming FTX EU's assets were transferred on the sly and warning that Backpack's repayment plan might not hold up in court.

Despite the legal drama, Backpack's standing firm. They say their acquisition got the green light from Cyprus regulators and is totally separate from the main FTX bankruptcy circus. They started verifying user identities in April and kicked off withdrawals in May for those lucky EU creditors.